service tax:new notification

sandhyakri (Querist) 27 March 2008 This query is : Resolved
i wish to know whether the exemption of service tax to a principal conducting clinical research from 1-3-2007 from the drug controller of india is also applicable to the party conducting the testing on its behalf in case testing is outsourced to another party

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Rajesh Kumar (Expert) 28 March 2008
No. Exemption notification are to be construed strictly. If the notification exempts Drugg Controller, only his services are exempt. This does not automatically means that the services provided to the drug controller is also exempt.

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